LAS VEGAS – While COVID may be fading from the forefront for many, the lingering financial burdens continue to impact our local business community. At Vegas Valley Plumbing, owner Keith Chapman vividly remembers the challenging days when his business teetered on the brink of collapse.
“I wouldn’t have survived the pandemic without this funding,” he admitted.
Enter the Employee Retention Credit (ERC), a federal funding program introduced during the COVID pandemic to provide crucial support to struggling businesses.
“This credit offers eligible business owners up to $26,000 between 2020 and 2021,” explained Andrew Leavitt from the Nevada Financial Literacy Advisory Council and Pinnacle Lending Group. “For each employee, they can claim and receive up to $260,000 as an actual tax credit. Unlike the ‘PPP’ (Paycheck Protection Program), there are no restrictions, and it’s still available.”
Leavitt introduced Chapman to the program, and it made a significant difference.
“It essentially saved our company,” Chapman acknowledged. “We were struggling until the ERC came along. It brought comfort and alleviated the stress and pressure caused by the lack of revenue.”
But why are we discussing this credit three years later?
“Prices are skyrocketing, and supply chain disruptions make obtaining affordable materials nearly impossible,” Leavitt explained. “Businesses are facing more financial struggles and are finding it challenging to retain employees. If you’re a business owner in this situation, you need to explore this opportunity because it’s available until 2025.”
While the program has been beneficial for business owners like Chapman, fraudulent claims have emerged as a concern. Consequently, the program may be discontinued.
“They are considering ending this program sooner rather than later due to numerous warnings from the IRS regarding fraud and unethical actions,” Leavitt cautioned. “If the program is terminated and you haven’t filed for it, you won’t receive any benefits.”
So, how can you determine if you qualify?
“The first step is to consult a tax professional,” advised Leavitt. “The main issue with this program is that many people have been denied because they were told they didn’t experience a reduction in gross sales receipts. However, that’s not the only qualification criterion.”
Moreover, the timeline for receiving your money is quicker than you might think.
“If the refund exceeds $300,000, it may take six months to a year to process. For amounts under $300,000, it could take six months or less,” Leavitt clarified.
Leavitt also shared an important update:
When a company claims the employee retention credit, they receive a refund. However, they must update their business tax returns by removing certain wage deductions previously claimed for employee expenses.
Here’s a crucial point: The refund received through the employee retention credit reduces the company’s expenses. Consequently, they cannot claim as many deductions on their taxes, potentially resulting in a small additional tax payment.
If you’d like to reach out to Pinnacle Lending Group for further information, here are their contact details:
6475 S Rainbow Blvd Ste. 102, Las Vegas, NV 89118
Copyright 2022 702 Times, NV Globe. All rights reserved.
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